However, if the demand increases significantly, an increase in production would be justified and would lead to an increase in gross profit.
Also, consider that an overall drop in prices for all the models they sell in China may (actually, will) shift demand toward top-spec, higher margin versions. So, without really doing anything other than adjusting pricing in China, Tesla can sell higher-margin cars and improve its revenue numbers.
Tesla has stated it is not easy to increase S&X production. The manufacturing lines and supply chain are all optimized at 100k/year.